Unaccepted OTS offer letter from borrower does not bind bank to settlement; fresh application required for consideration.

JUDGMENT

1. The Petitioner has filed this Writ Petition on the contention that in spite of payment of the OTS amount as per Ext.P2, the Bank is demanding further amounts from the Petitioner.

2. The learned Counsel for the Respondent Bank points out that Ext.P2 is only an offer letter from the Petitioner for Rs.1,97,000/- , and the Bank has not accepted the said offer.

3. On going through Ext.P2, it is seen that the Bank has merely accepted a copy of the same from the Petitioner. There is no assurance from the side of the Bank that the loan would be settled for Rs.1,97,000/-.

4. The contention of the learned Counsel for the Petitioner is that the Petitioner has paid the amount of Rs.1,97,000/- as revealed from Exts.P3, P4, P5, & P6.

5. The learned Standing Counsel for the Respondent Bank submitted that as of 31.08.2025, the amount outstanding after adjusting the amount of Rs.1,97,000/- is 1,40,664.49 and the Bank is ready to offer OTS even now to the Petitioner.

6. Hence, this Writ Petition is disposed of, directing the Petitioner to approach the Bank with necessary Application for OTS within a period of one week and directing the Bank to consider the Application for OTS within a period of one month from the date of receipt of the Application.

7. Since the Petitioner has already paid Rs.1,97,000/-, further proceedings for recovery will be kept in abeyance till the date of disposal of the Application for OTS. In case the Petitioner does not submit the Application for OTS within one week, the Bank is free to proceed with the recovery proceedings.